Question: Operating Leverage is calculated as : (a) Contribution EBIT (b) EBIT PBT (c) EBIT Interest (d) EBIT Tax

Operating Leverage is calculated as :

(a) Contribution ÷ EBIT

(b) EBIT ÷ PBT

(c) EBIT ÷ Interest

(d) EBIT ÷ Tax

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Intermediate Financial Management Questions!

Q:

1. EW Partners, a main methodology and the executives counseling firm is setting up its financial plans for the year to 31 March 2021. One of accomplice 'W' is worried about liquidity, he contended,...

Q:

winning bid ( $ ) sun mon tue wed thu fri # bids rank- in -day # auctions 535.00 0 0 0 1 0 0 8 1 13 536.00 0 0 0 1 0 0 7 2 13 586.00 0 0 0 1 0 0 11 3 13 585.00 0 0 0 1 0 0 7 4 13 535.00 0 0 0 1 0 0 4...

Q:

4. M.A. Restricted is starting another undertaking for assembling of a plastic part. The accompanying expense data has been determined for yearly creation of 12,258 units which is the full limit:...

Q:

Please show full working. TQ. Subject: Financial Management Formula Table is below. Please use the appropriate formula. QUESTION 3 1) Tuah Restaurant operates two branches in Klang Valley, and has...

Q:

1. Mangit Company is currently operating at a loss of P15,000. The sales manager has received a special order for 5,000 units of product, which normally sells for P35 per unit. Costs associated, P3;...

Q:

Please show full working. TQ. Subject: Financial Management Formula Table is below. Please use the appropriate formula. QUESTION 4 Megah Corporation's projected sales for the first eight months of...

Q:

2022 Full Year Results Strong sales growth and continued progress against strategy Underlying performance GAAP measures (unaudited) 2022 vs 2021 2022 vs 2021 Full Year Underlying sales growth (USG)...

Q:

Sales revenue = $500,000 (10,000 units @ $50/unit) Variable costs of operations = $200,000 (10,000 units @ $20/unit) Contribution margin = $300,000 Fixed costs of operation = $240,000 Operating...

Q:

Dear Colleagues What is required is as follows 1- Caculate the DOL, DFL, and DTL. 2- what are the recommended financial strategies to achive DTL = 1.1 3- What is the current beakeven point? 4- What...

Q:

\begin{tabular}{l|l} 39 & Hints for Working on this Assignment \\ \hline 40 & \end{tabular} This exercises is a bit like solving a puzzle. First, you do the easy formulas to fill in the box. So,...

Q:

On September 1, Blue Spruce Inc. had an inventory of 42 backpacks at a cost of $30 each. The company uses a perpetual inventory system and estimates returns at 10%. During September, the following...

Q:

Consider the reaction 2S0 2 (g) + 0 2 (g) 2S03(g) a. Write the equilibrium constant expression for K C . b. What is the C for the reaction if at equilibrium the concentrations are [SO 2 ] = 0.10 M;...

Q:

Question content area top Part 1 The process of evaluating relevant information that changes operating income under alternative courses of action is called _ _ _ _ _ _ _ _ . Question content area...

Q:

The probabilities of a return on an investment of $5,000, $7,000, and $9,000 are 1 / 2, 3/8, and1 / 8.